Trillion-Dollar annual opportunity
Green hydrogen solutions provide emission-free mobility in a growing number of commercial applications. Andy Marsh, CEO of American green hydrogen company Plug, emphasised the multifunctionality of hydrogen. According to Bloomberg and Goldman Sachs, hydrogen is on track to provide 20% of the world's energy, presenting a US$ 10 Trillion per year opportunity according to Marsh.
Plug's PEM (Platinum-using green hydrogen and fuel cell solutions) electrolysers produce carbon-free green hydrogen using renewable electricity and water, and PEM fuel cells power the cleanest of clean electromobility. The electrolysers stand on platforms that can be tilted by 15 to 18 degrees and are weatherproof.
Making Green Hydrogen economical
It was further highlighted by Sanjay Shrestha, chief strategy officer of Plug, that it is extremely important to make green hydrogen economical, easy and ubiquitous.
The new US’s Inflation Reduction Act of 2022 is poised to assist in this matter. It is supposed to help make green hydrogen economical compared to grey hydrogen. It provides financial incentives for companies that improve energy efficiency, reduce carbon emissions and develop new forms of energy.
Application of Green Hydrogen projects
Currently, Plug is developing large-scale integrated renewable energy and green hydrogen plants that will have a capacity of up to 1 000 tonnes of green hydrogen per day. Furthermore, the company is working with several partners on the planned construction of a dedicated pipeline for green hydrogen as well as on the long-term storage of green hydrogen.
Shrestha said that the hydrogen pipeline, along with large hydrogen sites, will enable a cost-efficient transport of energy to where it is demanded, stabilising the electric grid in the process.
Hydrogen may then become a solution in decarbonising transport and industrial applications, effectively tackling the issue of moving towards a green economy.
For 2023, Plug expects to generate approximately $285 million in revenue from its commercial fuels and cryogenic equipment business, and expects this revenue to reach nearly $4 billion by 2030. This highlights once again the huge opportunities in this field.
Liquefied Green Hydrogen
Liquefied green hydrogen is set to play a crucial role in the storage and transport of the molecule by lowering transport costs and reducing the space required for storage at the point of use.
Plug is heading for 200 tonnes of green hydrogen a day by the end of 2023, taking into account a new plant in New York. In addition, Plug is aiming for a generation capacity of 100 t/d in Europe in 2026, with a view to reaching 1 000 t/d by 2028.
The development and infrastructure measures carried out in recent months have enabled the company to deliver its electrolyser stacks worldwide.
Together with its partner Lhyfe of France, the company has developed a platform-based electrolyser positioned in the middle of the ocean and connected to a wind farm. The green hydrogen and energy produced offshore is transported onshore in the hydrogen.
Green ammonia accounts for half of Plug's $25 billion electrolyser sales, with methanol and fuels accounting for the other solutions.
Plug has great aspirations for the electrolysis business - targeting revenues of nearly $1.45bn and installed capacity of just over 3.5GW in 2026. For 2030, it is targeting an installed capacity of 20 GW and revenues of $7.3 billion.
The reference plant design is based on Plug's PEM electrolysers. By integrating modular technologies and optimising the plant balance through standardisation and centralisation, the design unlocks numerous benefits.
Plug describes itself as a leader in PEM electrolyser technology and its partner McDermott as a leader in hydrogen storage and transport, with the option to produce liquefied green hydrogen.